Hammerson completes sale of Croydon jv stake
Hammerson has closed a deal to sell its 50% stake in a major redevelopment site in Croydon, south London, to its joint venture partner Unibail-Rodamco-Westfield.
The Croydon Limited Partnership, which includes the Whitgift and Centrale (pictured) shopping centres, was set up by the developers in 2012. The site also consists of high street retail frontage, office blocks and multi-storey car parks.
The value of the deal has not been disclosed. However, it is thought to be worth around £70m.
Hammerson has closed a deal to sell its 50% stake in a major redevelopment site in Croydon, south London, to its joint venture partner Unibail-Rodamco-Westfield.
The Croydon Limited Partnership, which includes the Whitgift and Centrale (pictured) shopping centres, was set up by the developers in 2012. The site also consists of high street retail frontage, office blocks and multi-storey car parks.
The value of the deal has not been disclosed. However, it is thought to be worth around £70m.
In a trading update this morning, Hammerson confirmed it had offloaded around £410m of assets as part of its £500m disposals strategy. After its deal to sell its 25% stake in Paris mall Italie Deux last month, it said it had raised around £340m of proceeds from asset sales.
Hammerson chief executive Rita-Rose Gagné said: “The transaction reinforces the group’s disciplined approach to capital allocation to deliver a sustainable, best in class platform that unlocks value for all stakeholders.”
Hammerson has faced pressure to speed up its disposals strategy from activist investor Lighthouse in recent weeks.
Lighthouse, the investment vehicle of former Hammerson director Des de Beer, owns around 23% of the REIT and has tabled resolutions to appoint two new board members at the owner’s AGM on 4 May, which other shareholders have opposed.
Mayor of Croydon Jason Perry said that URW will develop a new masterplan for the site this year, which will “inform a new, revised application for the town centre that will meet the future needs” of the community.
URW chief executive Jean-Marie Tritant said: “With our full ownership of the property, it allows URW to work in partnership with the mayor of Croydon, the Greater London Authority and other vital local stakeholders on a vision and options that support the wider transformation of the area.”
URW UK chief operating officer Scott Parsons said the business will “continue the progress of the Croydon development” to “uncover the huge potential that it has to offer”.
Parsons said: “The transformational success of our two mixed-use destinations, Westfield London and Westfield Stratford City, has been a catalyst for wider investment in White City and the Olympic legacy site and the completion of this purchase further demonstrates our commitment to regeneration in the capital.
“We look forward to creating the new masterplan in partnership with the community and local stakeholders in Croydon, to realise the future vision for the town centre to become a thriving destination in south London.”
The project most recently stalled after consent for a large-scale Westfield shopping complex at the site expired in 2021.
Proposals for a £1.4bn redevelopment were first granted outline planning approval in 2014.
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